Entrepreneurs and organisation leaders are often so preoccupied with immediate issues that they lose sight of their ultimate objectives. That’s why an organisational review and preparation of a strategic plan is a virtual necessity. This may not be a recipe for success, but without it the organisation is much more likely to fail.
Organisations exist only to create value for stakeholders who include shareholders, employees, customers and the community. Each stakeholder group will have different expectations and it is important that the organisation understands these expectations so that the strategy addresses them.
In reviewing the performance of organisations, it is always interesting to note that those that perform at the highest levels have some sort of formalised strategic plan in place and have implemented it well. On the other hand, those organisations that struggle have no plan in place and seem to scramble in their attempts to be successful.
In order for an organisation to be successful, there needs to be a roadmap for success. A strategic plan helps to provide direction and focus for all employees. It points to specific results that are to be achieved and establishes a course of action for achieving them. A strategic plan also helps the various work units within an organisation to align themselves with their common goals.